Overall landlords incur annual costs of £8,256 on their rental properties, spending £2,848 on repairs, according to the research from Direct Line for Business.
In its latest survey it found that the average respondent’s portfolio comprised 5.3 properties, and drew an annual income of £94,344.
Repairs were the largest reported cost, with materials and labour costs averaging £2,848. Landlord insurance was the second highest, accounting for £1,329, or 1.4% of the gross annual rental income. Despite this, 18% of those interviewed claimed they do not have landlord insurance.
DL4B offers cover for one property or up to five properties on a single policy, with discounts available for multi property policies. DL4B will also guarantee to beat any like for like quote.
‘It is vital that landlords get the right cover for their properties. You are unlikely to be covered in a standard home insurance policy, and there are many valuable extras available, including rental income protection if your property is uninhabitable due to an insured event such as a fire or a flood,’ said Jazz Gakhal, head of Direct Line for Business.
‘A good landlord’s policy will also include public liability insurance also known as property owner’s liability insurance as standard as you could be held liable for injuries on your property or damage to neighbouring property,’ he explained.
‘Equally, if you are a tenant, speak to your landlord to make sure this is in order. It might not seem like it’s your responsibility but if there’s an accident that means you need to leave the property, you’ll be dependent on the landlord having suitable cover to make sure you get alternative accommodation,’ he added.
Of the other costs incurred by landlords, estate agent and property management fees accounted for slightly more than a fifth of costs, with estate agents collecting 8.9% of the total, and property management firms taking 12.6%.
